Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, engages in casino entertainment, and gaming and entertainment businesses in the United States.
Reasonable growth potential and slightly overvalued.
Share Price & News
How has Red Rock Resorts's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RRR's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: RRR underperformed the US Hospitality industry which returned -41.4% over the past year.
Return vs Market: RRR underperformed the US Market which returned -11.5% over the past year.
Price Volatility Vs. Market
How volatile is Red Rock Resorts's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall StThese 4 Measures Indicate That Red Rock Resorts (NASDAQ:RRR) Is Using Debt In A Risky Way
2 weeks ago | Simply Wall StIs Red Rock Resorts, Inc. (NASDAQ:RRR) An Attractive Dividend Stock?
1 month ago | Simply Wall StEstimating The Fair Value Of Red Rock Resorts, Inc. (NASDAQ:RRR)
Is Red Rock Resorts undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RRR ($9.93) is trading below our estimate of fair value ($16.74)
Significantly Below Fair Value: RRR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RRR is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.
PE vs Market: RRR is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RRR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RRR is overvalued based on its PB Ratio (1.4x) compared to the US Hospitality industry average (1.4x).
How is Red Rock Resorts forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RRR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: RRR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: RRR's is expected to become profitable in the next 3 years.
Revenue vs Market: RRR's revenue (1% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: RRR's revenue (1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RRR's Return on Equity is forecast to be high in 3 years time (21.2%)
How has Red Rock Resorts performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RRR is currently unprofitable.
Growing Profit Margin: RRR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: RRR is unprofitable, but has reduced losses over the past 5 years at a rate of 11.2% per year.
Accelerating Growth: Unable to compare RRR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: RRR is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (1.7%).
Return on Equity
High ROE: RRR has a negative Return on Equity (-0.86%), as it is currently unprofitable.
How is Red Rock Resorts's financial position?
Financial Position Analysis
Short Term Liabilities: RRR's short term assets ($281.6M) exceed its short term liabilities ($276.0M).
Long Term Liabilities: RRR's short term assets ($281.6M) do not cover its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: RRR's debt to equity ratio (388.3%) is considered high.
Reducing Debt: RRR's debt to equity ratio has increased from 334.7% to 388.3% over the past 5 years.
Inventory Level: RRR has a high level of physical assets or inventory.
Debt Coverage by Assets: RRR's debt is not covered by short term assets (assets are 0.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: RRR has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: RRR has been profitable on average in the past, therefore cash runway is not a concern.
What is Red Rock Resorts's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RRR's dividend (4.03%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: RRR's dividend (4.03%) is low compared to the top 25% of dividend payers in the US market (5.45%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RRR has been paying a dividend for less than 10 years.
Growing Dividend: RRR has only been paying a dividend for 4 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: RRR is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: RRR's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Frank Fertitta (57yo)
Mr. Frank J. Fertitta, III, has been Chief Executive Officer and Manager of Station Casinos LLC since January 2011 and June 2011 respectively. Mr. Fertitta has been Chief Executive Officer of Fertitta Ente ...
CEO Compensation Analysis
Compensation vs Market: Frank's total compensation ($USD1.96M) is below average for companies of similar size in the US market ($USD4.54M).
Compensation vs Earnings: Frank's compensation has increased whilst the company is unprofitable.
|Chairman & CEO||4.42yrs||US$1.96m||2.47% $31.6m|
|Executive VP||2.83yrs||US$3.08m||0.32% $4.1m|
|Executive VP & Chief Legal Officer||2.75yrs||US$3.03m||0.24% $3.1m|
|Executive VP & COO||1.08yrs||no data||0.045% $571.8k|
|Vice President of Finance & Investor Relations||no data||no data||no data|
Experienced Management: RRR's management team is considered experienced (2.8 years average tenure).
|Chairman & CEO||4.42yrs||US$1.96m||2.47% $31.6m|
|Vice Chairman of the Board||3.17yrs||US$125.00k||2.47% $31.4m|
|Lead Independent Director||4.5yrs||US$335.02k||0.047% $596.6k|
|Independent Director||4.5yrs||US$305.02k||0.047% $596.6k|
|Independent Director||4.5yrs||US$302.52k||0.047% $596.6k|
Experienced Board: RRR's board of directors are considered experienced (4.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Red Rock Resorts, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Red Rock Resorts, Inc.
- Ticker: RRR
- Exchange: NasdaqGS
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Implied Market Cap: US$1.275b
- Market Cap: US$692.647m
- Shares outstanding: 116.58m
- Website: https://www.redrockresorts.com
Number of Employees
- Red Rock Resorts, Inc.
- 1505 South Pavilion Center Drive
- Las Vegas
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RRR||NasdaqGS (Nasdaq Global Select)||Yes||Class A Common Stock||US||USD||Apr 2016|
|RRK||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||Apr 2016|
Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, engages in casino entertainment, and gaming and entertainment businesses in the United States. It operates through two segments, Las Vegas Operations and Native American Management. The company develops, manages, and operates casino entertainment properties; and owns and operates 10 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort & Casino in northern California. It operates approximately 20,400 slot machines, 375 table games, and 5,000 hotel rooms. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. is based in Las Vegas, Nevada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/28 03:18|
|End of Day Share Price||2020/03/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.